Blackstone Mortgage Trust, Inc. · NYSE:BXMT
Blackstone Mortgage Trust — Q2 2024 Earnings Presentation
39 slides from Blackstone Mortgage Trust's earnings presentation, July 2024
Slide 1: Q2 2024 Company Presentation
Blackstone Mortgage Trust, Inc. Q2 2024 Company Presentation JULY 2024 Blackstone Mortgage Trust, Inc.
Slide 2: Blackstone Mortgage Trust Overview
BLACKSTONE MORTGAGE TRUST OVERVIEW Blackstone Mortgage Trust (BXMT) is a publicly traded commercial mortgage REIT focused on senior lending in North America, Europe, and Australia BXMT is managed by Blackstone, the largest real estate private equity business in the world, with access to all the
Slide 3: BXMT Market Positioning
BXMT MARKET POSITIONING BXMT is well-positioned to navigate the current environment with a senior, floating-rate portfolio generating robust cash flow, and a strong balance sheet with substantial liquidity Floating-rate portfolio Senior loan positions with drives current income significant structu
Slide 4: Blackstone Overview
BLACKSTONE OVERVIEW World’s Largest Alternative Asset Manager (a) $1.1T $347B “We've built trust with investors by delivering outstanding performance through market cycles.” assets under management Stephen A. Schwarzman net gains for investors(b) 70+ Investment Strategies Real Estate Private Equity
Slide 5: BREDS Overview
BREDS OVERVIEW BXMT’s senior floating-rate lending business benefits from cross-market knowledge and insights from across the Blackstone Real Estate Debt Strategies platform Originates senior floating-rate loans on institutional-quality Blackstone Mortgage Trust $21B assets Downside protection
Slide 6: Superior Real Estate Platform
SUPERIOR REAL ESTATE PLATFORM One fully integrated real estate platform across 12 global offices Blackstone Advantage Constant Communication Integrated Perspective Global Business Weekly 1 849 professionals Partners’ Meeting 12 global offices Global ICMs Investment Review Committees glob
Slide 7: BXMT Lending Strategy
BXMT LENDING STRATEGY BXMT originates loans that are sized and structured to capitalize value-add business plans to drive cash flow growth and long-term value creation BXMT’s loans are repaid when Sponsors sell or refinance assets, typically following execution of business plan BXMT Lending Stra
Slide 8: BXMT Target Investments
BXMT TARGET INVESTMENTS Loan Size $50M to $500M+ Collateral First mortgages on stabilized or value-add assets Property Type All commercial property types Geographies North America, Western Europe and Australia Loan to Value Last dollar 50% to 75% Rate SOFR + 3.25% and higher, scaled to risk Term 3 t
Slide 9: Portfolio Overview
PORTFOLIO OVERVIEW Well-diversified, fully-scaled $20.8B portfolio(g) secured by institutional-quality assets typically undergoing value-add business plans Loans backed by assets across sectors, including Multifamily (27%), US Office (26%), and Hospitality (18%) Collateral Diversification(g) Geo
Slide 10: Multifamily Portfolio
MULTIFAMILY PORTFOLIO BXMT’s multifamily collateral is located in submarkets that have seen 26% rent growth(j) since Q1 2021 with less new supply under construction than their broader respective MSAs 99.5% performing multifamily portfolio diversified across core cities and Sunbelt markets Geogra
Slide 11: Office Portfolio
OFFICE PORTFOLIO BXMT continues to proactively manage its office portfolio, having reduced net exposure by $1.4B over the past two years and addressing risk through credit-enhancing loan modifications and resolutions 20% of BXMT’s office portfolio is risk rated 1-2, low leverage loans (53% w.a.
Slide 12: Loan Maturities
LOAN MATURITIES 91% of the $5.1B(o) of performing loans that reached maturity or an extension test in 1H were repaid, satisfied extension performance tests, or extended with new equity commitments or additional economics to BXMT Loans that did not extend based on performance tests, with new equi
Slide 13: Borrower Interest Rate Caps
BORROWER INTEREST RATE CAPS In the last 12 months, rate caps on $15.0B of performing loans expired and 93% were replaced with new rate caps or interest guarantees; new rate caps have a 3.8% weighted-average strike price(p) vs. 3.3% at expiration 95% of BXMT’s performing loans have rate caps (wei
Slide 14: Robust Capitalization
ROBUST CAPITALIZATION BXMT’s large-scale business and strong track record afford it consistent access to a wide variety of asset-level and corporate capital options, supporting efficient execution and balance sheet stability throughout market environments Term Loan Credit B Facilities Securitized
Slide 15: Robust Capitalization
ROBUST CAPITALIZATION BXMT’s capital structure prioritizes risk management and balance sheet stability 1. No capital markets and limited credit MTM provisions protect liquidity 2. Prioritize lower cost over incremental leverage to optimize current income 3. Term-matched: debt maturities correspond
Slide 16: Shareholder Return
SHAREHOLDER RETURN BXMT has a long track record of delivering for shareholders, achieving an annual economic return of 6.4%(r) over the last 10 years BXMT return generation has exceeded open-end core equity real estate funds and US high-yield bonds Economic Return(s) since Inception 10-Year Retu
Slide 17: Multifamily Agency Lending Partnership
MULTIFAMILY AGENCY LENDING PARTNERSHIP In June 2024, BXMT entered into a partnership with M&T Realty Capital to provide borrowers access to agency multifamily execution through M&T’s Fannie Mae DUS and Freddie Mac Optigo platforms Agency lending partnership is highly complementary with core tran
Slide 18: Case Studies
Case Studies Blackstone Mortgage Trust, Inc. Blackstone | 17
Slide 19: Sample BXMT Loan Modification Case Study
SAMPLE BXMT LOAN MODIFICATION CASE STUDY BXMT proactively manages assets to reduce credit risk over time, enhancing outcomes even when business plans face challenges BXMT loans carry structural benefits such as extension tests, guarantees, and approvals over major decisions, which facilitate ris
Slide 20: BXMT Sample Transactions
BXMT SAMPLE TRANSACTIONS Dallas Multifamily (Risk Rated 1) $35M floating-rate first mortgage loan originated in Q4 2021 Recently built (2017 vintage), 200-unit multifamily asset targeting 55+ market Property was 89% leased at origination with a business plan to complete lease-up and stabilize
Slide 21: BXMT Sample Transactions (Cont'd)
BXMT SAMPLE TRANSACTIONS (CONT’D) Atlanta Mixed Use (Risk Rated 2) $290M floating-rate first mortgage loan originated in Q4 2018 Mixed use office and retail in prime location in Midtown, Atlanta Sponsor completed $200M+ redevelopment, added 250k+ sf new-build space including office, an iPic th
Slide 22: BXMT Sample Transactions (Cont'd)
BXMT SAMPLE TRANSACTIONS (CONT’D) Bermuda Hotel (Risk Rated 3) $69mm floating-rate first mortgage loan originated in Q2 2024 88-key amenity-rich luxury resort in Tucker’s Point, Bermuda Sponsor has recently invested $24mm+ to renovate the asset and plans to spend $17mm+ on additional capex pro
Slide 23: Endnotes Relating to Company Presentation
ENDNOTES RELATING TO COMPANY PRESENTATION a. Based on Blackstone analysis of company earnings presentations and calls, as of March 31, 2024 or latest publicly available data. b. The $347B Net Capital Gain figure includes realized and unrealized gains LTD as of June 30, 2024 from all Blackstone (or i
Slide 24: BXMT Q2 2024 Earnings Release
BXMT Q2 2024 Earnings Release Blackstone Mortgage Trust, Inc. Blackstone | 23
Slide 25: BXMT Highlights
BXMT HIGHLIGHTS Q2 GAAP EPS of $(0.35) and Distributable EPS(1) of $0.49; Distributable EPS prior to charge-offs(2) of $0.56, excluding realized losses from loan resolutions Strong repayments and loan resolutions coupled with emerging origination activity reflect continued progress through the c
Slide 26: Second Quarter Results
SECOND QUARTER RESULTS Q2 GAAP basic loss per share of $(0.35), Distributable Earnings(1) per share of $0.49, and Distributable EPS prior to charge-offs(1) of $0.56; paid a dividend of $0.62 per share for the second quarter Earnings Book value per share of $22.90, incorporates $5.21 per share of
Slide 27: Earnings
EARNINGS Q2 Distributable Earnings prior to charge-offs remain encumbered by interest expense from non-performing loans; loan resolutions will unlock earnings potential over time Book value per share of $22.90 incorporates $5.21 per share of CECL reserves Earnings Per Share Book Value and CECL R
Slide 28: Portfolio
PORTFOLIO Well-diversified portfolio of 166 senior loans, secured by institutional-quality assets across sectors and markets Geographic Footprint(b)(f) Collateral Diversification(b)(g) Other Property 4% WA, 1% Life Sciences / Studio 2% Retail 3% Multifamily 27% Industrial 10% NY, 15% MA, 2% IL, 3%
Slide 29: Portfolio: Repayment Activity and Risk Rating
PORTFOLIO Accelerating repayment activity with $701M of repayments in Q2 and $2.5B year-to-date(h) Credit challenges concentrated in US office, which is 55% watchlisted or impaired, though higher-quality office continues to show liquidity ($721M repayments YTD);(h) remainder of portfolio is 96%
Slide 30: Credit
CREDIT 90% performing portfolio;(b) $385M(d) of non-performing loan resolutions in 1H 2024 in line with reserve levels $906M of CECL reserves reflected in Q2 book value; asset-specific CECL reserves represent 26% of impaired loan cost basis, implying collateral value declines of over 50%, on ave
Slide 31: Capitalization
CAPITALIZATION Continued to maintain strong liquidity, reflecting conservative capital management Well-structured balance sheet positioned to withstand volatility, with no capital markets mark-to-market provisions, limited credit mark-to-market, and no corporate debt maturities until 2026 Liquid
Slide 32: Appendix
I. Appendix Blackstone Mortgage Trust, Inc. Blackstone | 31
Slide 33: Portfolio Details
APPENDIX Portfolio Details ($ in millions) Origination Total Principal Net Book Cash All-in Maximum Property Loan per Origination Loan Type (k) Date (l) Loan (k) Balance (k) Value Coupon (m) Yield (m) Maturity (n) Location Type SF/Unit/Key LTV (c) Loan 1 Senior Loan 4/9/2018 $1,487 $1,217 $1,213 +4.
Slide 34: Consolidated Balance Sheets
APPENDIX Consolidated Balance Sheets ($ in thousands, except per share data) June 30, 2024 December 31, 2023 Assets Cash and cash equivalents $373,876 $350,014 Loans receivable 22,870,848 23,787,012 Current expected credit loss reserve (893,938) (576,936) Loans receivable, net $21,976,910 $23,210,07
Slide 35: Consolidated Statements of Operations
APPENDIX Consolidated Statements of Operations ($ in thousands, except per share data) nice Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Income from loans and other investments Interest and related income $466,152 $521,892 $952,275 $1,013,276 Less: Interest and related e
Slide 36: Quarterly Per Share Calculations
APPENDIX Quarterly Per Share Calculations (in thousands, except per share data) Three Months Ended June 30, 2024 Three Months Ended Mar 31, 2024 Distributable Net loss (o) ($61,057) ($123,838) Earnings Charge-offs of CECL reserves (p) (12,537) (61,013) Reconciliation Increase in CECL reserves 152,40
Slide 37: Definitions
DEFINITIONS Distributable Earnings: Blackstone Mortgage Trust, Inc. (“BXMT”) discloses Distributable Earnings in this presentation. Distributable Earnings is a financial measure that is calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting
Slide 38: Endnotes Relating to Earnings Release
ENDNOTES RELATING TO EARNINGS RELEASE a. Represents new loan originations of $69M and debt buybacks of $60M during the twelve months ended June 30, 2024. Excludes upsizes of existing loans. b. Based on Net Loan Exposure. See Definitions for definition. c. Reflects weighted average loan-to-value (“LT
Slide 39: Forward-Looking Statements & Important Disclosure Information
FORWARD-LOOKING STATEMENTS & IMPORTANT DISCLOSURE INFORMATION All rights to the trademarks and/or logos presented herein belong to their respective owners and Blackstone's use hereof does not imply an affiliation with, or endorsement by, the owners of these logos. Opinions expressed reflect the curr
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